#South Korea #Seoul #Eco-Friendly #LG Innotek #Smart IC

LG Innotek Unveils Next-Generation Smart IC Substrate

On December 22, 2025, LG Innotek, led by CEO Moon Hyuksoo, made a significant leap in technology by introducing the world's first 'Next-Generation Smart IC Substrate.' This innovative product not only ramps up the functionality of integrated circuits (ICs) but also emphasizes environmental sustainability. The company's announcement sheds light on the features and advantages of this breakthrough technology.

Major Breakthrough in Production Processes

One of the standout features of LG Innotek's new smart IC substrate is its eco-friendly production process. The use of new materials allows for a 50% reduction in carbon emissions during manufacturing, a shift that equates to an annual decrease of about 8,500 tons of CO2 — comparable to the effect of planting 1.3 million trees. This commitment to sustainability directly addresses growing environmental concerns and regulatory pressures, particularly in Europe where eco-conscious policies are becoming increasingly stringent.

Enhancing Durability and Performance

Aside from its green attributes, this new substrate excels in durability, boasting a lifespan that is three times longer than conventional smart IC substrates. This durability significantly lowers the chance of information reading errors, enhancing the user experience for applications such as credit cards and electronic passports, which require robust performance despite frequent usage.

Pioneer in Smart Card Technology

The substrate plays a crucial role in smart card technology, serving as a mounting platform for IC chips within devices crucial for secure information storage and transmission. Existing substrates often depend on precious metals like palladium and gold, which are costly and have a high environmental impact due to the mining processes involved. LG Innotek's innovative approach eliminates the need for precious metal plating, positioning it as a leader in environmentally and economically sustainable smart card solutions.

Market Strategy and Global Reach

Mass production of the Next-Generation Smart IC Substrate commenced in November 2025, targeting leading global smart card manufacturers. With 20 domestic patents related to this technology and applications filed in the US, Europe, and China, LG Innotek's strategy revolves around aggressive market penetration while securing a foothold in the growing global smart card marketplace.

According to Mordor Intelligence, the global smart card market, currently valued at USD 20.3 billion, is anticipated to escalate with an annual growth rate of 8.6%, reaching USD 30.6 billion by 2030. The increasing shift to dual-function cards that support both contact and contactless transactions is expected to drive demand, making LG Innotek's technology well-positioned for success.

Conclusion

Cho Jitae, Executive Vice President at LG Innotek, stated, "The Next-Generation Smart IC Substrate satisfies both customers' environmental, social, and governance (ESG) requirements and offers technological competitiveness." The company is committed to providing innovative products that deliver unique value, establishing itself as a partner capable of fulfilling customers' visions and contributing positively to environmental sustainability. As the smart card industry evolves, LG Innotek is at the forefront, setting new standards for performance and sustainability in technology.